System - set of interrelated components, with a clearly defined boundary, working together to

achieve a common set of objectives by accepting inputs and producing outputs in an organized
transformation process.
- Is a interdependent group of items forming a unified whole.

Three basic functions:

1. Input the process of entering information into the system. It involves capturing and
assembling elements that enter the system to be processed.
Example: raw materials, energy, data, and human effort must be secured and
organized for processing.
2. Processing involves transformation processes that convert input into output with the
use of processing device like central processing unit (cpu), Operating systems (e.g
windows, apple os), microprocessors (intel, Pentium).
Examples: manufacturing processes, the human breathing process, or
mathematical calculations.
3. Output- involves transferring of elements that have been produced by a transformation
process to their ultimate destination.
- The visual and auditory perceptions provided by the computer after processing the
provided information.
Example: finished products, human services, and management information must
be transmitted to their human users.

The system concept becomes even more useful by including 2 additional elements:

Feedback - is the data about the performance of a system.

Control involves monitoring and evaluating feedback to determine whether a system is

moving toward the achievement of its goal. It makes necessary adjustments to a systems input
and processing components to ensure that it produces proper output.

Components of Information Systems

Information System is a system that accepts resources (data) as input and processes them
into products (information) as output.

An information system depends on the resources of people (end users and IS

specialists), hardware (machines and media), software (programs and procedures), data (data
and knowledge bases), and networks (communications media and network support) to perform
input, processing, output, storage, and control activities that transform data resources into
information products.

Information System has 5 major Resources:

1. People Resources- people are the essential ingredient for the successful operation of all
information systems and these includes:
 A) End users (also called users or clients) are people who use an information system or
the information it produces.
Ex: customers, salesperson, clerks, managers, engineers, accountants and etc.
- Knowledge workers - people who spend most of their time communicating and
collaborating in teams and workgroups and creating, using, and distributing information.
B) IS specialists- people who develop and operate information systems.
2. Hardware Resources- includes all physical devices and materials used in information
processing. It includes not only machines but also all data media, that is, tangible objects
on which data is recorded.
Ex: computer systems and computer peripherals
3. Software Resources- includes all sets of information processing instructions
Ex: system software, application software and procedures
4. Data Resources- valuable organizational resources
- Product descriptions, customer records, employee files, inventory databases.
5. Network Resources- emphasizes that communications technologies and networks are
fundamental resource components of all information systems
- Communications media, communications processors, network access, control software

Information System Activities

1. Input of Data Resources- data entry activities such as recording and editing
2. Processing of Data into Information- data are typically subjected to processing activities,
such as calculating, comparing, sorting, classifying, and summarizing
3. Output of Information Products- Information in various forms is transmitted to end
users and made available to them in the output activity
4. Storage of Data Resources- Storage is a basic system component of information systems.
Storage is the information system activity in which data are retained in an organized
manner for later use.
5. Control of System Performance- an information system should produce feedback about
its input, processing, output, and storage activities. This feedback must be monitored
and evaluated to determine whether the system is meeting established performance
standards.

Source document- the original, formal record of a transaction

Network infrastructure- generic category emphasizes that many hardware, software, and data
technologies are needed to support the operation and use of a communications network